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The purpose of this business plan is to raise $125,000 for the development of a salsa manufacturer while showcasing the expected financials and operations over the next three years. Salsa Manufacturer, Inc. (“the Company”) is a New York based corporation that will provide a diverse line of brand label salsas to customers in its targeted market. The Company was founded by John Doe.

1.1 Products and Services

As stated above, the Salsa Manufacturer will develop, manufacturer, and brand an expansive line of salsas that are popular among consumers. Mr. Doe is currently sourcing a number of regional and national wholesalers that will acquire inventories of its produced products. In regards to the manufacturing process, the Company will work with several overseas manufacturing firms to coordinate the production of the Company’s proprietary salsa products. The third section of the business plan will further describe the services offered by Salsa Manufacturer, Inc.

1.2 The Financing

Mr. Doe is seeking to raise $125,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate. The financing will be used for the following: • Development of the Company’s office location. • Financing for the first six months of operation. • Capital to purchase the initial inventories of proprietary salsas. Mr. Doe will contribute $25,000 to the venture.

1.3 Mission Statement

Salsa Manufacturer, Inc.’s mission is to become the recognized leader in its targeted market for developing, producing, and branding a diverse line of in demand salsa products.

1.4 Mangement Team

The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the food products industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.

1.5 Sales Forecasts

Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.

1.6 Expansion Plan

The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals within the target market.

2.0 Company and Financing Summary

2.1 Registered Name and Corporate Structure

Salsa Manufacturer, Inc. The Company is registered as a corporation in the State of New York.

2.2 Required Funds

At this time, Salsa Manufacturer requires $125,000 of debt funds. Below is a breakdown of how these funds will be used:

2.3 Investor Equity

Mr. Doe is not seeking an investment from a third party at this time.

2.4 Management Equity

John Doe owns 100% of Salsa Manufacturer, Inc.

2.5 Exit Strategy

If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of Salsa Manufacturer, Inc. Based on historical numbers, the business could fetch a sales premium of up to 5 times earnings.

3.0 Products and Services

Below is a description of the products offered by Salsa Manufacturer, Inc.

3.1 Manufacturing and Distribution of Salsas

The primary revenue source for the business will come from the direct sale of salsas to wholesalers from which the Company will have developed, produced, and marketed. Mr. Doe intends to produce and distribute a number of salsa brands that are used for Mexican food. Mr. Doe intends to source these inventories for regional and national level manufacturers that will coordinate the development of salsas and salsa packaging with the Management Team.

4.0 Strategic and Market Analysis

4.1 Economic Outlook

This section of the analysis will detail the economic climate, the food products industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is sluggish. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this sluggish will continue for a significant period of time, at which point the economy will begin a prolonged recovery period. However, the Company will earn significant gross margins on each item sold, and despite the current economic climate, the business will be able to maintain profitable and cash flow positive operations.

4.2 Industry Analysis

Within the United States there are approximately 7,500 companies that specialize in the sale and distribution of specialized food products to the general public. Each year, these businesses aggregately generate more than $10 billion dollars of revenue and provide jobs for almost 100,000 Americans. For the last five years, annual payrolls have exceeded $2 billion dollars a year among these individuals. The industry has experience solid growth over the last ten years are more people are becoming concerned with their health. This growth corresponds to the increase in capital stock and general wealth of the American public. Studies have show that as a person’s wealth increases their proclivity towards a healthier lifestyle also increases. As such, the industry has grown at an average annual rate of 8% per year for each of the last five years. This trend is expected to continue, and then taper off as the market normalizes and the industry becomes consolidated. Currently, this industry has a number of fragmented market agents that will most likely be rolled up as time progresses.

4.3 Customer Profile

The end user of the Salsa Manufacturer will be a middle to upper middle class person living in the Company’s target market. Common traits among clients will include: • Annual household income exceeding $50,000 • Lives within a metropolitan area within the United States.

4.4 Competitive Analysis

This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.

5.0 Marketing Plan

Salsa Manufacturer, Inc. intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Company.

5.1 Marketing Objectives

• Develop ongoing relationships with food product wholesalers and retailers throughout the United States.

• Develop e-commerce functionality for the Company’s website.

• Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.

5.2 Marketing Strategies

Mr. Doe intends on using a number of marketing strategies that will allow the Salsa Manufacturer to easily target retail stores and food product wholesalers within the target market. These strategies include traditional print advertisements and ads placed on search engines on the Internet. Below is a description of how the business intends to market its products to retail locations. The Salsa Manufacturer will also use an internet based strategy. This is very important as many people seeking salsa products now the Internet to conduct their preliminary searches. Mr. Doe will register the Company with online portals so that potential retail customers can easily reach the business. The Company will also develop its own online website. A marketing firm will be retained to assist the Salsa Manufacturer with appropriately branding and marketing its products to the Company’s targeted demographics.

5.3 Pricing

In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.

6.0 Organizational Plan and Personnel Summary

6.1 Corporate Organization

6.2 Organizational Budget

6.3 Management Biographies

In this section of the business plan, you should write a two to four paragraph biography
about your work experience, your education, and your skill set. For each owner or
key employee, you should provide a brief biography in this section.

7.0 Financial Plan

7.1 Underlying Assumptions

• Salsa Manufacturer, Inc. will have an annual revenue growth rate of 16% per year.

• The Owner will acquire $125,000 of debt funds to develop the business.

• The loan will have a 10 year term with a 9% interest rate.

7.2 Sensitivity Analysis

In the event of an economic downturn, the business may have a decline in its revenues. Selected salsas are purchased with discretionary income, and during times of economic recession, the business may see a decline in its top line income. However, the business will earn substantial margins from its product sales, and the business will be able to remain profitable and cash flow positive despite moderate declines in revenue.